XML 89 R43.htm IDEA: XBRL DOCUMENT v3.22.0.1
REINSURANCE (Tables)
 12 Months Ended
Dec. 31, 2021
Effects of Reinsurance [Line Items]  
Summary of the composition of pool of assets

 

December 31, 2021

 

December 31, 2020

 

 

 

Carrying

 

Fair

 

Carrying

 

Fair

 

 

(in millions)

 

Value

 

Value

 

 

Value

 

Value

 

Corresponding Accounting Policy

Fixed maturity securities - available for sale(a)

$

31,815

$

31,815

 

$

36,047

$

36,047

 

Fair value through other comprehensive income (loss)

Fixed maturity securities - fair value option

 

1,983

 

1,983

 

 

200

 

200

 

Fair value through net investment income

Commercial mortgage loans

 

3,637

 

3,859

 

 

3,679

 

4,010

 

Amortized cost

Real estate investments

 

201

 

395

 

 

358

 

585

 

Amortized cost

Private equity funds / hedge funds

 

1,606

 

1,606

 

 

1,168

 

1,168

 

Fair value through net investment income

Policy loans

 

380

 

380

 

 

413

 

413

 

Amortized cost

Short-term investments

 

50

 

50

 

 

34

 

34

 

Fair value through net investment income

Funds withheld investment assets

 

39,672

 

40,088

 

 

41,899

 

42,457

 

 

Derivative assets, net(b)

 

81

 

81

 

 

(1)

 

(1)

 

Fair value through net realized gains (losses)

Other(c)

 

602

 

602

 

 

604

 

604

 

Amortized cost

Total

$

40,355

$

40,771

 

$

42,502

$

43,060

 

 

(a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $(2.2) billion ($(1.8) billion after-tax) for 2021 and $1.0 billion ($812 million after-tax) during the post deconsolidation period (June 2, 2020-December 31, 2020).

 

(b) The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $389 million and $10 million, respectively, as of December 31, 2021. The derivative assets supporting the Fortitude Re funds withheld arrangements had a fair market value of $357 million as of December 31, 2020. These derivative assets and liabilities are fully collateralized either by cash or securities.

(c) Primarily comprised of Cash and Accrued investment income.
Summary of the impact of modco and funds withheld

Years Ended December 31,

 

 

 

 

 

(in millions)

 

2021

 

 

2020

Net underwriting income(a)

$

-

 

$

-

Net investment income - Fortitude Re funds withheld assets

 

1,971

 

 

1,053

Net realized gains (losses) on Fortitude Re funds withheld assets:

 

 

 

 

 

Net realized gains - Fortitude Re funds withheld assets

 

1,003

 

 

463

Net realized losses - Fortitude Re embedded derivatives

 

(603)

 

 

(2,645)

Net realized gains (losses) on Fortitude Re funds withheld assets

 

400

 

 

(2,182)

Income (loss) from continuing operations before income tax expense (benefit)

 

2,371

 

 

(1,129)

Income tax expense (benefit)(b)

 

499

 

 

(237)

Net income (loss)

 

1,872

 

 

(892)

Change in unrealized appreciation (depreciation) of all other investments(b)

 

(1,760)

 

 

812

Comprehensive income (loss)

$

112

 

$

(80)

(a) Effective in the second quarter of 2021, an amendment was made to the purchase agreement to finalize the post-closing purchase price adjustment for adverse reserve development and as a result, during 2021, AIG recognized a $21 million benefit through Policyholder benefits and losses incurred.

(b) The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent.
Supplemental information for gross loss and benefit reserves net of ceded reinsurance

At December 31,

 

2021

 

 

2020(b)

 

 

As

 

Net of

 

 

As

 

Net of

(in millions)

 

Reported

Reinsurance

 

 

Reported

Reinsurance

Liability for unpaid losses and loss adjustment expenses

$

(79,026)

$

(43,678)

 

$

(77,720)

$

(43,154)

Future policy benefits for life and accident and health insurance contracts

 

(59,950)

 

(33,964)

 

 

(56,878)

 

(30,692)

Policyholder contract deposits

 

(156,686)

 

(152,266)

 

 

(154,470)

 

(149,501)

Reserve for unearned premiums

 

(19,313)

 

(15,028)

 

 

(18,660)

 

(14,606)

Other policyholder funds

 

(3,476)

 

(2,885)

 

 

(3,548)

 

(2,933)

Reinsurance assets(a)

 

70,630

 

 

 

 

70,390

 

 

(a) Reinsurance assets excludes (i) allowance for credit losses and disputes of $333 million and $326 million (of which $135 million pertains to CECL reserve for Liability for unpaid losses and loss adjustment expenses) for both years ended December 31, 2021 and 2020, respectively, (ii) paid loss recoveries of $3,645 million and $3,157 million for the years ended December 31, 2021 and 2020, respectively, and (iii) policy and contract claims recoverable of $342 million and $320 million for the years ended December 31, 2021 and 2020, respectively.

(b) Liabilities for certain universal life products were reclassified from Policyholder contract deposits to Future policy benefits for life and accident and health insurance contracts. For additional information, see Note 1.
Schedule of long-duration insurance in force ceded to other insurance companies

At December 31,

 

 

 

 

 

 

(in millions)

 

2021

 

2020*

 

2019

Long-duration insurance in force ceded

$

363,008

$

349,453

$

264,732

*The Long-duration insurance in force ceded in 2020 has been revised from $292.5 billion to $349.5 billion to correct Long-duration insurance in force ceded in 2020. This correction has no impact on AIG’s consolidated financial statements and is not considered material to previously issued financial statements.
Schedule of rollforward of allowance for credit losses

Years Ended December 31,

2021

 

2020

 

 

General

 

Life and

 

 

 

 

General

 

Life and

 

 

(in millions)

Insurance

Retirement

 

Total

 

Insurance

Retirement

 

Total

Balance, beginning of year

$

292

$

83

$

375

 

$

111

$

40

$

151

Initial allowance upon CECL adoption

 

-

 

-

 

-

 

 

202

 

22

 

224

Addition to (release of) allowance for expected credit losses and disputes, net

 

6

 

18

 

24

 

 

(12)

 

21

 

9

Write-offs charged against the allowance for credit losses and disputes

 

(17)

 

-

 

(17)

 

 

(9)

 

-

 

(9)

Balance, end of year

$

281

$

101

$

382

 

$

292

$

83

$

375
Short-Duration Reinsurance  
Effects of Reinsurance [Line Items]  
Schedule of insurance premiums written and earned

 

Years Ended December 31,

(in millions)

 

2021

 

2020

 

2019

Premiums written:

 

 

 

 

 

 

Direct

$

30,910

$

28,521

$

29,338

Assumed

 

7,209

 

5,947

 

5,808

Ceded

 

(11,702)

 

(11,012)

 

(9,692)

Net

$

26,417

$

23,456

$

25,454

Premiums earned:

 

 

 

 

 

 

Direct

$

30,279

$

28,596

$

30,017

Assumed

 

6,640

 

5,984

 

6,395

Ceded

 

(11,301)

 

(10,435)

 

(9,526)

Net

$

25,618

$

24,145

$

26,886
Long-Duration Reinsurance  
Effects of Reinsurance [Line Items]  
Schedule of insurance premiums written and earned

Years Ended December 31,

 

 

 

 

 

 

(in millions)

 

2021

 

2020

 

2019

Premiums

 

 

 

 

 

 

Direct

$

4,596

$

4,381

$

4,363

Assumed

 

2,265

 

1,058

 

228

Ceded

 

(1,220)

 

(1,061)

 

(916)

Net

$

5,641

$

4,378

$

3,675

Policy Fees

 

 

 

 

 

 

Direct

$

3,130

$

2,957

$

3,016

Assumed

 

-

 

-

 

-

Ceded

 

(79)

 

(40)

 

(1)

Net

$

3,051

$

2,917

$

3,015